California Municipal Finance Authority in Chevron Municipal Bond Offering

June 15, 2005

Cleary Gottlieb represented Banc of America Securities LLC as underwriter in a $19.9 million municipal bond offering by the California Municipal Finance Authority (CMFA).  The proceeds from the issuance of the Pollution Control Revenue Refunding Bonds (Chevron U.S.A. Inc. Project), Series 2005 were used to refund a prior series of municipal bonds issued for the benefit of Chevron Corporation, the proceeds of which were used to fund the acquisition, construction and installation of water pollution control facilities at Chevron U.S.A. Inc.’s crude oil refinery in El Segundo, California. 

Under a financing agreement between Chevron U.S.A. and the CMFA, Chevron U.S.A., a wholly owned subsidiary of Chevron Corporation, will make periodic payments to the CMFA for the payment of interest on the Series 2005 Bonds.  The repayment of principal, interest and any redemption premium on the Series 2005 Bonds is unconditionally guaranteed by Chevron Corporation.  Cleary is designated underwriters’ counsel for Chevron Corporation.